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Gender diversity and cost of equity capital: evidence from an emerging market

Luiz Eduardo Gaio & Nelson Oliveira Stefanelli

Journal of Economics, Finance and Administrative Science2025https://doi.org/10.1108/jefas-02-2024-0059article
AJG 1
Weight
0.41

What the paper says

Purpose This study examines the relationship between board gender diversity and the cost of equity among publicly traded Brazilian companies. Design/methodology/approach The sample includes Brazilian firms listed on B3 from 2010 to 2023. This study estimated linear and nonlinear regression models using the two-step generalized method of moments (GMM). It measured gender diversity through board composition metrics and diversity indices, while it calculated the cost of equity using the Fama–French five-factor model. Findings The results obtained suggest that increased board gender diversity is associated with a lower cost of equity, with a nonlinear effect indicating that progressive diversity improvements yield more significant reductions in capital costs. Originality/value This study better provides a comprehension of gender diversity and financial performance in a Latin American emerging market, addressing a gap in research predominantly focused on developed economies. It is the first to use the Fama–French five-factor model to explore this relationship in emerging markets.

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Cite this paper

https://doi.org/https://doi.org/10.1108/jefas-02-2024-0059

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@article{luiz2025,
  title        = {{Gender diversity and cost of equity capital: evidence from an emerging market}},
  author       = {Luiz Eduardo Gaio & Nelson Oliveira Stefanelli},
  journal      = {Journal of Economics, Finance and Administrative Science},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1108/jefas-02-2024-0059},
}

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Gender diversity and cost of equity capital: evidence from an emerging market

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.